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Eltek Ltd (ELTK)
NASDAQ:ELTK
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Eltek
(NASDAQ:ELTK)
Rating:71Outperform
Price Target:
$11.00
▲( 11.11% Upside)
Eltek (ELTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.21M
Dividend Yield1.92%
Average Volume (3M)15.68K
Price to Earnings (P/E)19.4
Beta (1Y)0.35
Revenue Growth1.05%
EPS Growth-51.90%
CountryUS
Employees329
SectorTechnology
Sector Strength77
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.15
Shares Outstanding6,714,040
10 Day Avg. Volume20,955
30 Day Avg. Volume15,675
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)1.75
Price to Sales (P/S)0.00
P/FCF Ratio-14.60
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda2.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Eltek Business Overview & Revenue Model
Company DescriptionEltek (ELTK) is a leading manufacturer of high-performance and high-reliability printed circuit boards (PCBs), catering primarily to the defense, aerospace, medical, and industrial sectors. The company specializes in providing advanced technology solutions, offering a range of products that include rigid, flex-rigid, and multi-layer PCBs designed to meet stringent quality standards and customer-specific requirements.
How the Company Makes MoneyEltek generates revenue through the design, manufacturing, and sale of customized printed circuit boards. The company's key revenue streams include direct product sales to original equipment manufacturers (OEMs) and contract manufacturers, particularly within the defense, aerospace, medical, and industrial sectors. Eltek's emphasis on high-reliability and advanced technology PCBs allows it to command premium pricing. Additionally, the company benefits from long-term contracts and partnerships with key industry players, which provide a stable revenue base. Eltek's earnings are also supported by its ability to innovate and meet the evolving technological demands of its clients, maintaining competitive advantage and ensuring customer loyalty.
Eltek Financial Statement Overview
Summary
Eltek demonstrates strong financial health with robust profitability and a well-managed balance sheet. While stable margins and low leverage are strengths, the decline in revenue and negative Free Cash Flow indicate areas for improvement. Future focus should be on enhancing revenue growth while managing capital expenditures to improve Free Cash Flow.Income Statement
Eltek shows a stable profitability with a Gross Profit Margin of 22.2% and a Net Profit Margin of 9.1% for 2024. However, there's a decline in revenue from the previous year by 0.4%, which indicates a need for revenue growth strategies. EBIT and EBITDA margins remain healthy, reflecting efficient operations despite the slight revenue dip.75
Positive
Balance Sheet
The company's financial structure is strong, with a Debt-to-Equity Ratio of 0.15, indicating low leverage. A solid Return on Equity of 10.3% signifies effective use of equity capital. Furthermore, the Equity Ratio stands at 68.5%, showing a high proportion of assets financed by equity, enhancing financial stability.80
Positive
Cash Flow
Eltek's cash flow situation is mixed, with negative Free Cash Flow indicating high capital expenditures. The Operating Cash Flow to Net Income Ratio of 1.07 suggests efficient cash generation from operations, but the Free Cash Flow to Net Income Ratio is negative, highlighting the impact of significant investments on cash reserves.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 46.53M | 46.70M | 39.65M | 33.82M | 36.71M | Gross Profit |
| 10.34M | 13.10M | 8.27M | 6.90M | 7.74M | EBIT |
| 4.39M | 7.29M | 2.97M | 1.95M | 3.03M | EBITDA |
| 6.68M | 9.16M | 4.51M | 3.73M | 4.62M | Net Income Common Stockholders |
| 4.22M | 6.35M | 3.19M | 5.04M | 2.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 17.24M | 12.14M | 7.37M | 9.28M | 4.74M | Total Assets |
| 60.16M | 47.17M | 41.52M | 42.78M | 35.16M | Total Debt |
| 6.02M | 6.66M | 11.30M | 13.75M | 11.19M | Net Debt |
| -1.56M | -2.62M | 3.93M | 4.46M | 6.45M | Total Liabilities |
| 18.96M | 20.30M | 20.50M | 21.71M | 19.89M | Stockholders Equity |
| 41.19M | 26.87M | 21.02M | 21.07M | 15.27M |
| Cash Flow | Free Cash Flow | |||
| -4.97M | 6.43M | 802.00K | 2.34M | 2.17M | Operating Cash Flow |
| 4.54M | 8.86M | 3.83M | 3.88M | 3.25M | Investing Cash Flow |
| -15.87M | -2.96M | -3.03M | -1.65M | -1.14M | Financing Cash Flow |
| 9.61M | -3.81M | -1.64M | 2.12M | 814.00K |
Eltek Technical Analysis
Positive
9.90
Price Trends
8.86
Positive
9.84
Positive
10.18
Negative
Market Momentum
0.38
Positive
56.11
Neutral
19.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTK, the sentiment is Positive. The current price of 9.9 is above the 20-day moving average (MA) of 9.77, above the 50-day MA of 8.86, and below the 200-day MA of 10.18, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 19.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELTK.
Eltek Risk Analysis
Eltek disclosed 49 risk factors in its most recent earnings report. Eltek reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eltek Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $67.21M | 19.40 | 8.80% | 1.92% | 1.05% | -51.90% | |
71 Outperform | $51.72M | 20.07 | 20.31% | ― | 18.08% | ― | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
56 Neutral | $60.01M | 54.51 | 6.59% | ― | 8.40% | -18.22% | |
52 Neutral | $51.79M | ― | -18.75% | ― | -18.62% | -112.68% | |
48 Neutral | $101.67M | ― | -24.86% | ― | 2.59% | -48.02% | |
47 Neutral | $24.93M | 6.41 | -9.81% | ― | -12.87% | -148.14% |
* Technology Sector Average
Performance Comparison
ELTK
Eltek
10.01
-1.66
-14.22%
LPTH
Lightpath Technologies
2.37
1.07
82.31%
MIND
MIND Technology
6.49
2.11
48.17%
NSYS
Nortech Systems
9.03
-2.65
-22.69%
LINK
Interlink Electronics
6.01
1.36
29.25%
SOTK
Sono-Tek
3.81
-0.88
-18.76%
Eltek Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -0.30%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are strong indicators of future growth through capacity expansions and increased demand, the current quarter faced significant profitability challenges due to higher costs and equipment optimization issues.Q1-2025 Updates
Positive Updates
Increased Revenue
Revenues for Q1 2025 totaled $12.8 million compared to $11.8 million in Q1 2024, indicating an increase in demand for Eltek's products.
Financial Income Growth
Financial income increased to $0.5 million in Q1 2025 due to the devaluation of the Israeli Shekel against the U.S. dollar and interest earned on interest-bearing accounts.
Strong Product Demand
Continued strong demand for Eltek's products across all segments, expecting no material impact from U.S. tariffs in the near- to medium-term.
Future Capacity Expansion
Plans to complete the installation of new plating lines by mid-2026, which will significantly increase production capacity and profitability.
Negative Updates
Decrease in Gross Profit
Gross profit decreased to $2.2 million in Q1 2025 from $3.3 million in Q1 2024, primarily due to higher labor costs and lower yields during the quarter.
Operating Profit Decline
Operating profit fell to $0.7 million in Q1 2025 compared to $1.7 million in Q1 2024.
Challenges with New Equipment
Faced challenges in optimizing new equipment performance, affecting production yield and profitability due to unavailable technical support personnel.
Delayed Equipment Delivery
A 2-month delay in the delivery of a significant coating line from a European supplier.
Net Income Drop
Net income decreased to $1 million or $0.15 per share in Q1 2025 from $1.7 million or $0.27 per share in Q1 2024.
Company Guidance
During the Eltek Ltd 2025 First Quarter Financial Results Conference Call, the company provided guidance that highlighted several key metrics and operational updates. Revenues for Q1 2025 were reported at $12.8 million, a year-over-year increase from $11.8 million in Q1 2024. However, gross profit decreased to $2.2 million from $3.3 million in the same period last year, primarily due to higher labor costs and lower yields associated with the ramp-up of new production equipment. Operating profit was $0.7 million, down from $1.7 million in Q1 2024, while net income was reported at $1 million or $0.15 per share, compared to $1.7 million or $0.27 per share in the previous year. EBITDA also saw a decline to $1.2 million from $2.1 million year-over-year. The company faced challenges due to delays in equipment delivery and operational disruptions but remained optimistic about future profitability as new plating lines were expected to significantly enhance production capacity by mid-2026. Eltek also noted ongoing strong demand for its products, which is causing increased lead times for customer deliveries and emphasized its strategic efforts to diversify its supply base and improve operational efficiency through a comprehensive IT system overhaul.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.